• Avoid This ‘Bearish Black Hole’ → Get Our Favorite ETF Ideas

    We warned investors about a “black hole of risk.” It’s here. Prepare yourself for what comes next. Get our Macro team’s favorite ETF ideas (and risk management levels) with 30-days free of “ETF Pro Plus.”

Editor's Note: Below is a brief excerpt and chart from today's Early Look written by our Director of Research Daryl Jones. Click here to learn more about the Early Look.

CHART OF THE DAY: The Fed Always Cuts At/Near All-Time Highs - zath

One question we’ve been fielding from many investors recently relates to whether the Fed will cut when U.S. equity markets are at, or near, all-time highs.

As our ever data driven Senior Macro analyst Darius Dale highlighted during The Macro Show yesterday, the short answer is yes. This occurs frequently.

In fact, as the Chart of the Day below shows, this is almost always the case for initial interest rate cuts.  So, to the extent you think the stock market will prevent P.E. Powell from cutting rates, it will not.  Conversely, a market sell-off will almost certainly force his hand.  

CHART OF THE DAY: The Fed Always Cuts At/Near All-Time Highs - The Fed Always Cuts At Near All Time Highs